Undergraduate Students

Reductions to State Grant Aid

In 2025, the Washington State Legislature passed SSB 5785, a bill aimed at reducing the state’s budget deficit by significantly modifying the Washington College Grant (WCG) and the Washington College Bound Scholarship (WCBS). Starting in 2026-27, the state has significantly reduced the maximum WCG amount for students attending private not-for-profit colleges, such as PLU. In the following year (2027-28), these same students and colleges will also experience a significant reduction in the amount of WCBS as directed by the state legislature. The table below outlines the impact of the reductions for students receiving the maximum WCG amount. Be aware that the amounts listed below are only estimates at this time.

While the table below refers to students receiving the maximum WCG amount, it is important to note that students who receive less than the maximum WCG amount will also experience a proportional reduction.

2025-262026-272027-28Reduction (2526 to 2728)
WA College Grant (max amount)$9,739$6,476$6,476-$3,263
WA College Bound$3,295$6,976$250-$3,045
Total $13,034$13,452$6,726-$6,308

As the table indicates, students who receive both WCG and WSCB will not experience a reduction in total state grant aid until 2027-28 because in 2026-27, WSCB is being increased to cover the reduction in WCG. However, starting in 2027-28, the WSCB Scholarship is reduced to only $250.

For students admitted as of Fall 2026 who are recipients of the 253 PLU Bound Scholarship, PLU will make up the full reduction in state grant aid so that these students continue to receive a combination of federal, state, and PLU gift aid that covers full tuition. PLU is committed to making up this shortfall for 253 PLU Bound Scholarship recipients who remain in good standing and continue to be eligible for the Washington State College Bound Scholarship.

For students who receive the Washington College Grant but not the Washington College Bound Scholarship, unfortunately, PLU can make up only a small portion of this reduction, approximately 20-25%.

Federal Parent Loan Changes Effective 2026-27

Legislation recently passed by Congress, known as the One Big Beautiful Bill Act (OBBBA), has resulted in significant modifications to the Federal Direct Loan Program beginning with the 2026-27 academic year (effective July 1, 2026).

Parents of Undergraduate Students

Starting in 2026-27, borrowing from the Federal Direct Parent PLUS Loan is being capped for new parent borrowers:

Annual Limit: $20,000 per student, per year – not per parent.

Aggregate Limit: $65,000 per student total.

Currently, parents can borrow up to the full cost of attendance minus other aid. This new cap means some families may need to seek alternative financing such as private loans if they need to borrow in excess of these limitations.

Legacy Provision for Parents

Parents may continue to borrow under the current rules (up to the full cost of attendance) for the lesser of three academic years or the student’s expected time to credential if:

  • The student they are borrowing for is enrolled in the same program the student was attending prior to July 1, 2026.
  • The parent borrowed a Federal Direct Parent PLUS Loan for that student before July 1, 2026.
  • The student does not withdraw from their program of study or otherwise cease enrollment.

Graduate Students

Elimination of Federal Direct Grad PLUS Loan for New Borrowers

Effective July 1, 2026, the Federal Direct Grad PLUS Loan will be eliminated for new borrowers. Current graduate students may continue to borrow from the Grad PLUS Loan for the lesser of three academic years or the student’s expected time to credential if they meet the following criteria:

  • They are enrolled in the same credentialed program in 2026-27 that they were enrolled in prior to July 1, 2026.
  • They borrowed a federal student loan for that specific program before July 1, 2026.
  • They do not withdraw from their program or study or otherwise cease enrollment.

Students who change programs or start a new degree after July 1, 2026 will not be eligible for the Federal Direct Grad PLUS Loan.

New Loan Limits for Federal Direct Unsubsidized Loan

Annual Limit: $20,500

Aggregate Limit: $100,000 (does not include undergraduate borrowing)

All Students

Starting in the 2026-27 academic year under OBBBA, a student’s annual direct loan amount must be adjusted for less-than-full-time enrollment. This requirement applies to both undergraduate and graduate students as well as the following loan programs: Direct Subsidized Loans, Direct Unsubsidized Loans, and Graduate PLUS Loans provided under OBBBA’s legacy provision. Parent PLUS Loans borrowed under OBBBA’s legacy provision are NOT subject to this requirement.

For undergraduate students at PLU, full-time is defined as 24 credits over the course of the academic year. For graduate students, full-time is defined as 8 credits per term.

Be aware that students will still need to be enrolled at least half-time in a given term to receive a federal student loan disbursement.

IMPORTANT NOTE: Final rules for OBBBA and its impact on federal student and parent loans are still being negotiated at the federal level. As a result, information on this page is subject to change. As final rules are published, this page will be updated accordingly.